Overall 92 of the firm’s sites have been earmarked for closure, although 11 have already stopped trading. Rent on another 113 will be slashed under the CVA.

Efforts will be made to redeploy redundant workers to new positions at the retailer. There are currently 100 vacancies across the group.

Chief executive Wilf Walsh said: “Receipt of creditor approval for the CVA proposal will enable us to take tough but necessary action to establish a right-sized estate of stores on economic rents, which is essential to restoring our profitability.”

The result came as the gloom engulfing the high street deepened, as it emerged that Poundworld could axe hundreds of jobs and nearly 100 stores in response to the brutal conditions.

Poundworld is weighing up store closures as part of a restructure Credit:
Anna Gowthorpe/PA

The retail chain is also eyeing a CVA, as it looks to reduce its 355-strong estate by a quarter.

Poundworld, which employs around 5,500 staff across the UK, is expected to lay bare its plans in the first half of May. It will appoint Deloitte to oversee the process.

The recent spell of bitter weather has piled more pressure on the retail sector, which is already struggling with waning consumer confidence, the shift to online, and escalating costs.

Hikes to the National Living wage, persistently high inflation and rising taxes sparked by last year’s business rates revaluation have squeezed margins.

West Yorkshire-based Poundworld, which also owns the Bargain Buys brand, launched in 2004 and serves more than two million customers a week. It is owned by US private equity firm TPG.